What is the beta of a stock with an expected return

Assignment Help Financial Management
Reference no: EM132224158

What is the beta of a stock with an expected return of 12.3 percent and a risk-free rate of 2.8 percent. The market risk premium is 6.2 percent.

Reference no: EM132224158

Questions Cloud

Determine the dollar amount of the variance : A evaluates performance by the use of a flexible budget, determine the dollar amount of the variance and if the variance is favorable or unfavorable
Write a description of the selected dataset and project : ITECH1103- Big Data and Analytics Group - applying Watson Analytics and designing useful visualization solutions and predictive solutions for various analytics
Disadvantages of starting and running corporation : When Henry started up his corporation, he also had to consider the disadvantages of starting and running a corporation. What are some of the disadvantages?
Calculate the company weighted average cost of capital : Air Taxi, Inc. has provided the following information: Calculate the company's weighted average cost of capital.
What is the beta of a stock with an expected return : What is the beta of a stock with an expected return of 12.3 percent and a risk-free rate of 2.8 percent. The market risk premium is 6.2 percent.
How does one become a holder of a negotiable instrument : How does one become a holder of a negotiable instrument? What is the difference between being a holder and a holder in due course
Which firm has a better return on equity : Two firms, X & Y, have a debt-total asset ratio of 25 percent and 45 percent and returns on total assets of 8 percent and 6 percent, respectively.
Show the effects of the events on the financial statements : Required: Show the effects of the events on the financial statements using a horizontal statements model like the following one
What is the price of each bond : You are considering an investment in two different bonds. One bond matures in six years and has a face value of $1,000. The bond pays an annual coupon

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the standard deviation of the portfolio described

Use the following formula to calculate the standard deviation of the portfolio described in the table below.

  Calculate the value of a 4 year european call option on bond

Suppose that an implied price volatility for a 5-year option on a bond maturing in 10 years is used to price a 9-year option on the bond. Would you expect the resultant price to be too high or too low? Explain.

  What is the most you should pay for share of common stock

What is the most you should pay for a share of common stock that just paid a dividend of $1.68 if rate of return is 10%

  MACRS schedule-What is the NPV of the project

Assume the company has other profitable projects. MACRS schedule. What is the NPV of the project?

  About the time value of money

You plan to invest at a yearly 7.88% interest compounded yearly for 9 years. If you want the investment will be worth $10,269 after 9 years, then you must put $_____ in the investment now. You plan to invest at yearly 13% interest compounded monthly.

  Expects to earn the same annual rate of return

Jackson expects to earn the same annual rate of return after 3 years from today as the annual rate implied from the past and expected values given in problem.

  New bonds offer in order to sell at face value

General Matter’s outstanding bond issue has a coupon rate of 8%, and it sells at a yield to maturity of 7.00%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at face v..

  What was its return on total assets

Barnes Corp's total assets at the end of last year were $415,000,000 and its net income after taxes was $17,750,000. What was its return on total assets?

  What is the second step of capital budgeting

What is the second step of capital budgeting? In your own words explain, forecast exchange rates using different methodologies.

  Calculate the portfolio weight for each individual stock

Calculate the portfolio weight for each individual stock. Calculate the portfolio beta.

  What is the depreciation amount for each year

The processor will be depreciated under the MACRS system using the applicable depreciation rates are 33%, 45%, 15%, and 7% respectively.

  The municipal bond fund is tax deductible

The only difference between them is that interest from the municipal bond fund is tax deductible, whereas the higher interest from corporate bond fund is not.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd